http://www.arnoldkling.com/blog/rules-vs-discretion/ taking the most charitable view of those who disagree Mon, 21 Dec 2020 00:12:22 +0000 hourly 1 https://wordpress.org/?v=4.0.32 http://www.arnoldkling.com/blog/rules-vs-discretion/#comment-91441 Sun, 21 Jul 2013 16:06:44 +0000 http://www.arnoldkling.com/blog/?p=1562#comment-91441 I’m squarely in the “merely reacts to what would have occurred anyway” camp, though perhaps “anticipates” would be a better description. Perhaps there is some signaling value to the Fed’s decisions, ie the markets believe there is some informational value in the Fed’s forecasts but are unaffected by their actual buying and selling, that’s about it. Maybe you and Caplan need to write a signaling model of the Fed, while he finishes his book on the signaling model of education.

]]> http://www.arnoldkling.com/blog/rules-vs-discretion/#comment-91434 Sun, 21 Jul 2013 15:14:37 +0000 http://www.arnoldkling.com/blog/?p=1562#comment-91434 I think we can anticipate Sumner’s response. To wit, they haven’t been targeting the “right” forecast. We need an NGDP futures market. The market knows vastly more than a few guys in a room.

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